By: Amr Adel
Dubai – Mubasher: It is expected that six to seven companies will launch initial public offerings (IPOs) on the Muscat Securities Market (MSM) in 2017, the bourse’s director general Ahmed Saleh Al Marhoon told Mubasher in an interview on Wednesday.
“Among the IPOs is a giant power distribution company with a huge capital compared with currently listed firms, in addition to Muscat Electricity Distribution Company,” Al Marhoon said
There will be four to five other small insurers who are considering launching IPOs, he added.
No government corporations are currently ready to issue shares in 2017, the top executive noted in the interview, adding that more governmental IPOs may be launched in 2018 as the government needs new financing resources.
Speaking to Mubasher on the sidelines of the Arab IPO Summit 2017 in Dubai, Al Marhoon stated that Oman was studying turning the MSM, an authority, into a joint stock company fully-owned by the government, indicating that there is a bill being discussed, which will take two years to be implemented.
Commenting on the new tools that may be added to the bourse, the top official said that the market was considering several tools, such as a lending and borrowing mechanism that are projected to be finalised by 2018.
Al Marhoon also pointed out that the MSM aims to launch Islamic sukuk and bonds, noting that the biggest challenges the bourse faces are weak liquidity and few IPOs.
The MSM director general predicted that GCC stock markets will see an improved performance on the medium-term in 2017 despite the decline in oil prices, as governments increasingly consider issuing shares.
He further noted that the upcoming offering of 5% of Saudi Aramco will encourage other governments to offer large public companies for sale on their respective bourses.
Translated by: Mahmoud El-Zahwey
